Question

introduction to Business Environment?​

Answer 1

Answer:

I don't know introduction to Buisiness Environment

Answer 2

Explanation:

Introduction

All living creatures including human beings live within an environment. Apart from the

natural environment, environment of humans include family, friends, peers and

neighbours. It also includes man-made structures such as buildings, furniture, roads and

other physical infrastructure. The individuals do not live in a vacuum. They continuously

interact with their environment to live their lives.

Just like human beings, business also does not function in an isolated vacuum. Businesses

function within the environment and have to negotiate their way through it. The extent to

which the business thrives depends on the manner in which it interacts with its

environment. A business, which continuously remains passive to the relevant changes in

the environment, gradually fade away from the market. To be successful business one not

only have to recognize different elements of the environment but also respect, adapt to or

have to manage and influence them. The business must continuously monitor and adapt to

the environment if it is to survive and prosper. Disturbances in the environment may spell

extreme threats or open up new opportunities for the firm. A successful business has to

identify, appraise, and respond to the various opportunities and threats in its environment.

As stated above, the success of every business depends on adapting itself to the

environment within which it functions. For example, when there is a change in the

government polices, the business has to make the necessary changes to adapt it to the new

policies. Similarly, a change in the technology may make the existing product useless or of

no importance, as we have seen that the introduction of computer has replaced the

typewriters; the colour television has made the black and white television out of fashion.

Again a change in the fashion or customers’ taste may shift the demand in the market for a

particular product, e.g., the demand for jeans reduced the sale of other traditional wear. All

these aspects are external factors that are beyond the control of the business. So the

business units must have to adapt themselves to these changes in order to survive and

succeed in business. Hence, it is very necessary to have a clear understanding of the

concept of business environment and the nature of its various components.

Definitions of Business Environment

The term ‘business environment’ connotes external forces, factors and institutions that

are beyond the control of the business and they affect the functioning of a business

enterprise. These include customers, competitors, suppliers, government, and the social,

political, legal and technological factors etc. While some of these factors or forces may have

direct influence over the business firm, others may operate indirectly. Thus, business

environment may be defined as the total surroundings, which have a direct or indirect

bearing on the functioning of business. It may also be defined as the set of external factors,

such as economic factors, social factors, political and legal factors, demographic factors, and technical factors etc., which are uncontrollable in nature and affects the business

decisions of a firm.